By Vinod Popat
India finds itself at a curious crossroads. On one hand, its economy is booming with unprecedented momentum. On the other, a growing number of the country’s wealthiest citizens are eyeing the exit door.
According to the 2025 Henley Private Wealth Migration Report, an estimated 3,500 Indian millionaires are expected to emigrate this year. While this figure is marginally lower than previous years, it still ranks among the highest globally.
🎯 What’s Driving This Exodus?
1. Taxation & Financial Scrutiny at Home
The Central Board of Direct Taxes (CBDT) has intensified its recovery drive—collecting ₹20,000 crore in Q1 FY25, nearly double that of last year. With outstanding dues now reaching ₹42 lakh crore, many high-net-worth individuals (HNWIs) perceive overseas relocation as a strategic hedge against increasing tax pressure and surveillance.
2. The Informal-to-Formal Shift
India’s push for fiscal discipline is gradually dissolving the informal economy. As once-shadowed assets are brought into the regulatory fold, compliance burdens for the ultra-wealthy have grown—creating friction for those unaccustomed to transparent scrutiny.
3. The Pull of Global “Golden Visas”
Across the globe, nations are wooing wealthy migrants with residency-for-investment programs:
- UAE Golden Visa: Tax-free income, world-class lifestyle, and pro-investor policies make the UAE the top HNWI destination. It is projected to gain 9,800 millionaires in 2025 alone.
- U.S. EB-5 & Proposed “Gold Card”: The longstanding EB-5 program continues to attract India’s elite. The proposed $5 million “Gold Card” could elevate the appeal further by offering faster processing and expanded rights.
- Europe’s Golden Gateways: While Malta’s passport program has closed, Portugal, Greece, and others remain attractive to Indians seeking access to the EU.
🌍 Where Are India’s Millionaires Headed?
- UAE leads with a forecast net inflow of 9,800 HNWIs, underscoring its successful transformation into a magnet for global wealth.
- USA follows, expecting ~7,500 HNWIs, thanks to its stable legal environment, strong education system, and economic opportunity.
- Europe remains a steady favorite—especially Portugal and Greece—offering both residency and lifestyle.
🇮🇳 What Does This Mean for India?
Capital Flight… But Also Capital Growth
Yes, India may see $26.2 billion in wealth leave with the 3,500 emigrating millionaires. But it’s worth noting: the number of Indian millionaires has surged 72% from 2014 to 2024. India’s wealth creation engine is far from stalling.
Diaspora as a Soft Power Asset
Indian HNWIs abroad continue to send remittances, invest in startups, buy property, and bolster India’s capital markets. Their global presence can actually enhance India’s economic footprint—if leveraged wisely.
A Policy Inflection Point
The steady outward trickle of wealth signals a need for introspection. Can India make itself more attractive to retain its elite?
Key reforms could include:
- A more predictable tax regime
- Ease of doing business, especially for family offices and startups
- Premium public services in healthcare, education, and security
🧭 The Way Forward
The data doesn’t indicate a crisis—it reflects a strategic recalibration. Indian millionaires are globalizing their portfolios, not abandoning their roots. The real challenge is making India a destination of choice, not just emotionally but economically and operationally.
In essence, India is creating wealth faster than it’s losing it. But to sustain this momentum, we must ensure the country remains not only a launchpad for prosperity but also a long-term home for its creators.
